Fighting AI with AI, finance firms prevented $5 million in fraud - but at what cost?
Briefly

Generative AI tools have increased the ease of committing fraud, as seen in high-profile incidents involving deepfake technology. Notably, a finance employee in Hong Kong was deceived into transferring $25 million to fraudsters posing as colleagues. Despite these risks, financial services companies are utilizing AI to bolster fraud prevention measures. A Mastercard and Financial Times survey indicated that 42% of issuers and 26% of acquirers have successfully saved over $5 million in fraud attempts through AI implementation. They are combining AI with traditional methods like two-factor authentication to enhance security.
The proliferation of advanced and easily accessible generative AI tools in recent years has made fraudulent activity exponentially easier, as exhibited in high-profile scams.
In a memorable incident, a finance employee in Hong Kong was misled into wiring $25 million to AI-generated deepfake fraudsters who posed as executives.
A recent survey by Mastercard revealed that 42% of financial issuers and 26% of acquirers saved over $5 million from attempted fraud using AI tools.
Despite the threat of scams, AI is also being used by financial services companies to enhance digital security alongside traditional security methods.
Read at ZDNET
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